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Information, college decisions and financial aid: Evidence from a cluster-randomized controlled trial in China

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  • Loyalka, Prashant
  • Song, Yingquan
  • Wei, Jianguo
  • Zhong, Weiping
  • Rozelle, Scott

Abstract

Past studies find that disadvantaged students in the United States are often misinformed about college costs and financial aid opportunities and thus may make sub-optimal decisions regarding college. This information problem may be even more serious in developing countries. We therefore conducted a cluster-randomized controlled trial to examine the effects of providing information on college costs and financial aid to high school students in poor regions of northwest China. We find that information increases the likelihood that students receive some types of financial aid. Information also positively affects the choice to attend college but does not seem to affect more specific college choices.

Suggested Citation

  • Loyalka, Prashant & Song, Yingquan & Wei, Jianguo & Zhong, Weiping & Rozelle, Scott, 2013. "Information, college decisions and financial aid: Evidence from a cluster-randomized controlled trial in China," Economics of Education Review, Elsevier, vol. 36(C), pages 26-40.
    • Handle: RePEc:eee:ecoedu:v:36:y:2013:i:c:p:26-40
    DOI: 10.1016/j.econedurev.2013.05.001
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Anders Hjorth-Trolle, 2018. "Beliefs, parental investments, and intergenerational persistence: A formal model," Rationality and Society, , vol. 30(1), pages 108-154, February.
    2. Avitabile, Ciro & de Hoyos, Rafael, 2018. "The heterogeneous effect of information on student performance: Evidence from a randomized control trial in Mexico," Journal of Development Economics, Elsevier, vol. 135(C), pages 318-348.
    3. Loyalka, Prashant & Song, Yingquan & Wei, Jianguo, 2012. "The distribution of financial aid in China: Is aid reaching poor students?," China Economic Review, Elsevier, vol. 23(4), pages 898-917.
    4. Herber, Stefanie P. & Kalinowski, Michael, 2016. "Non-take-up of Student Financial Aid: A Microsimulation for Germany," VfS Annual Conference 2016 (Augsburg): Demographic Change 145727, Verein für Socialpolitik / German Economic Association.
    5. Estelle Herbaut & Koen Geven, 2019. "What Works to Reduce Inequalities in Higher Education? A Systematic Review of the (Quasi-)Experimental Literature on Outreach and Financial Aid," Sciences Po publications info:hdl:2441/527ht1a96e8, Sciences Po.
    6. Pietrzyk, Irena & Erdmann, Melinda, 2020. "Investigating the impact of interventions on educational disparities: Estimating average treatment effects (ATEs) is not sufficient," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 65, pages 1-1.
    7. Giovanni Abbiati & Carlo Barone, 2015. "Is university education worth the investment? The expectations of upper secondary school seniors and the role of family background," FBK-IRVAPP Working Papers 2015-13, Research Institute for the Evaluation of Public Policies (IRVAPP), Bruno Kessler Foundation.
    8. Frauke H. Peter & Vaishali Zambre, 2014. "Wer studiert, ist informiert?: Studienentscheidungen und Informationsdefizite," DIW Roundup: Politik im Fokus 35, DIW Berlin, German Institute for Economic Research.
    9. Giovanni Abbiati & Gianluca Argentin & Carlo Barone & Antonio Schizzerotto, 2016. "Information matters, but it is not enough: a field experiment on the causal effect of information barriers for participation in Higher Education," FBK-IRVAPP Working Papers 2016-11, Research Institute for the Evaluation of Public Policies (IRVAPP), Bruno Kessler Foundation.
    10. Herber, Stefanie P. & Kalinowski, Michael, 2016. "Non-take-up of student financial aid: A microsimulation for Germany," BERG Working Paper Series 109, Bamberg University, Bamberg Economic Research Group.
    11. Xinxin Chen & Yaojiang Shi & Di Mo & James Chu & Prashant Loyalka & Scott Rozelle, 2013. "Impact of a Senior High School Tuition Relief Program on Poor Junior High School Students in Rural China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 21(3), pages 80-97, May.
    12. Clair Null & Clemencia Cosentino & Swetha Sridharan & Laura Meyer, "undated". "Policies and Programs to Improve Secondary Education in Developing Countries: A Review of the Evidence," Mathematica Policy Research Reports 516e420e637c4851b15e6a3f6, Mathematica Policy Research.
    13. Giovanni Abbiati & Carlo Barone, 2017. "Is university education worth the investment? The expectations of upper secondary school seniors and the role of family background," Rationality and Society, , vol. 29(2), pages 113-159, May.
    14. Bonilla-Mejía, Leonardo & Bottan, Nicolas L. & Ham, Andrés, 2019. "Information policies and higher education choices experimental evidence from Colombia," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 83(C).
    15. Estelle Herbaut & Koen Geven, 2019. "What Works to Reduce Inequalities in Higher Education? A Systematic Review of the (Quasi-)Experimental Literature on Outreach and Financial Aid," SciencePo Working papers Main hal-03456943, HAL.
    16. repec:hal:spmain:info:hdl:2441/527ht1a96e837pq2dubgo2953q is not listed on IDEAS
    17. Estelle Herbaut & Koen Geven, 2019. "What Works to Reduce Inequalities in Higher Education? A Systematic Review of the (Quasi-)Experimental Literature on Outreach and Financial Aid," Working Papers hal-03456943, HAL.
    18. Peter, Frauke H. & Zambre, Vaishali, 2017. "Intended college enrollment and educational inequality: Do students lack information?," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 60, pages 125-141.
    19. Stefanie P. Herber & Michael Kalinowski, 2016. "Non-Take-Up of Student Financial Aid: A Microsimulation for Germany," SOEPpapers on Multidisciplinary Panel Data Research 844, DIW Berlin, The German Socio-Economic Panel (SOEP).
    20. Hongbin Li & Prashant Loyalka & Scott Rozelle & Binzhen Wu, 2017. "Human Capital and China's Future Growth," Journal of Economic Perspectives, American Economic Association, vol. 31(1), pages 25-48, Winter.

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    More about this item

    Keywords

    Information; Financial aid; College choice; China; Rural high school; Randomized controlled trial;
    All these keywords.

    JEL classification:

    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid

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